59,60

What can you learn from the two graphs below? Businesses should always aim for higher output rate. Large facilities should maximize their capacity to take advantage of economies of scale. Average unit cost always decreases as output increases. A larger facility has a higher best operating level. Question 60 Which of the following statements is incorrect? Long-term capacity requirements are related to future customer demand. How much and when to spend capital for additional facility \& equipment is a tactical decision in capacity planning. Competitors' actions should be considered in capacity planning. Long range capacity planning should focus on aligning capacity plan with aggregate production plan